© 2024 Hudson RPO. All rights reserved. 1 Investor Presentation September 2024 Hudson Global …a leading global total talent solutions provider Nasdaq: HSON © 2024 Hudson RPO. All rights reserved. 2 This presentation contains statements that the Company believes to be "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this presentation, including statements regarding the Company's future financial condition, results of operations, business operations and business prospects, are forward-looking statements. Words such as “anticipate,” "estimate," "expect," "project," "intend," "plan," "predict," "believe" and similar words, expressions and variations of these words and expressions are intended to identify forward-looking statements. All forward-looking statements are subject to important factors, risks, uncertainties, and assumptions, including industry and economic conditions that could cause actual results to differ materially from those described in the forward-looking statements. Such factors, risks, uncertainties and assumptions include, but are not limited to, global economic fluctuations; the Company’s ability to successfully achieve its strategic initiatives ; risks related to potential acquisitions or dispositions of businesses by the Company; the Company’s ability to operate successfully as a company focused on its RPO business; risks related to fluctuations in the Company’s operating results from quarter to quarter due to various factors such as rising inflationary pressures and interest rates; the loss of or material reduction in our business with any of the Company’s largest customers; the ability of clients to terminate their relationship with the Company at any time; competition in the Company’s markets; the negative cash flows and operating losses that may recur in the future; risks relating to how future credit facilities may affect or restrict our operating flexibility; risks associated with the Company’s investment strategy; risks related to international operations, including foreign currency fluctuations, political events, natural disasters or health crises, including the Russia-Ukraine war, the Hamas-Israel war, and potential conflict in the Middle East; the Company’s dependence on key management personnel; the Company’s ability to attract and retain highly skilled professionals, management, and advisors; the Company’s ability to collect accounts receivable; the Company’s ability to maintain costs at an acceptable level; the Company’s heavy reliance on information systems and the impact of potentially losing or failing to develop technology; risks related to providing uninterrupted service to clients; the Company’s exposure to employment-related claims from clients, employers and regulatory authorities, current and former employees in connection with the Company’s business reorganization initiatives, and limits on related insurance coverage; the Company’s ability to utilize net operating loss carryforwards; volatility of the Company’s stock price; the impact of government regulations; restrictions imposed by blocking arrangements; risks related to the use of new and evolving technologies; and the adverse impacts of cybersecurity threats and attacks. Additional information concerning these, and other factors is contained in the Company's filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this document. The Company assumes no obligation, and expressly disclaims any obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-Looking Statements © 2024 Hudson RPO. All rights reserved. 3 Hudson Global at a Glance $mm, except per share amounts Stock Price(2) $18.21 Shares Outstanding(5) 2.8M Market Capitalization(2) $50.1 Cash(3) $15.3 Debt(3) $0.0 Usable NOL Carryforward(4) $302 # of Employees(7) 1,050 # of Countries 14 $mm 2020 2021 2022 2023 LTM Revenue $101.4 $169.2 $200.9 $161.3 $143.0 Adj Net Revenue $39.1 $68.2 $99.2 $80.3 $69.9 Adj EBITDA-RPO(1) $2.9 $13.5 $20.1 $9.6 $4.8 % of Adj Net Revenue 7.5% 19.8% 20.3% 11.9% 6.8% Corp Costs(1) $3.3 $3.4 $3.7 $3.7 $3.5 Adj EBITDA(1) $(0.4) $10.0 $16.4 $5.9 $1.3 • Hudson Global, Inc. (Nasdaq: HSON) (“Hudson Global” or “the Company”) owns Hudson RPO, a pure-play Total Talent Solutions provider • Nasdaq-listed; spun-off from Monster.com in 2003 • Strong financial position: $15.3(3) million of cash and $302(4) million of usable NOL carryforwards • Stock buybacks: initiated a new $5 million program on 8/8/23; repurchased 131k shares in H1 2024; shares outstanding reduced by approximately 14% since 12/31/18 • Owner mindset: board and management own approximately 19%(6) of total shares outstanding and expect to own more over time • Maximizing stockholder value: through internal investments in our growing high-margin RPO business, bolt-on acquisitions, and stock buybacks (1) Adjusted EBITDA and Corporate Costs are non-GAAP measures. Reconciliations of non-GAAP measures can be found in the appendix to this presentation. (2) As of August 30, 2024. Market Capitalization defined as Shares Outstanding times Stock Price. (3) As of June 31, 2024. Cash includes $0.6m of restricted cash. Debt excludes operating lease obligations. (4) As of December 31, 2023, as disclosed in Earnings Release. NOL carryforward is for U.S. federal and state tax expense. (5) 2.8 million shares outstanding as of July 19, 2024. Does not include unissued or unvested RSUs. (6) Includes unvested share units and share units that will be issued up to 90 days after a director’s/officer’s separation from service. (7) As of December 31, 2023. © 2024 Hudson RPO. All rights reserved. 4 Hudson Global: Our History 1999 – 2001: Hudson Global originated from 67 acquisitions made by TMP Worldwide, which later became Monster Worldwide, Inc. (i.e., Monster.com) 2003: Monster distributed shares of Hudson Global to its stockholders, creating a new independent publicly held company 2003-2013: Poor business structure and very poor leadership led to poor operating and financial performance The new Hudson Global – focused on expanding its global RPO business 2013 – 2018 20202019 2013 – 2014 Current CEO, Jeff Eberwein, invested in HSON shares and gained shareholder representation on the Board to improve performance 2015 BoD implemented a series of measures designed to enhance stockholder rights including: • Declassified the Board – directors elected annually • Allowed stockholders to call special meetings • Eliminated all supermajority voting requirements • Allowed stockholders to act by written consent • Eliminated cash compensation to the Board • Implemented a plan to protect valuable NOL asset 2015 Announced a $10M share purchase plan (completed 6/30/23) 2016 Paid two cash dividends totaling $3.4M 2015 – 2018 BoD initiated a strategic review to enhance stockholder value with a focus on selling non-core businesses; completed three divestitures to exit the agency recruitment business and focus on global RPO business Tender Offer Completed tender offer for 7.7% of total shares outstanding at a purchase price of $15 per share Profitability in Q3 & Q4 Growth in RPO profits and reductions in Corporate Costs enabled Hudson Global to cross over into profitability Share Repurchase Purchased 8.8% of total shares outstanding in two block trades at a purchase price of $8.63 per share 2021 2022 Expanding Through Acquisitions Acquired Coit Group, a San Francisco-based RPO provider, to expand further into tech sector; established office in San Francisco Acquired Karani, LLC, a Chicago- headquartered recruiting services provider that serves mainly U.S.- based customers from its operations in India and the Philippines Acquired Hunt & Badge, expanding Hudson RPO’s footprint further into the India recruitment market with an array of impressive deep client relationships with notable multinational companies Acquired Hudson Singapore, a recruitment services provider based in Singapore, significantly increasing Hudson RPO’s market presence in Southeast Asia Acquired Executive Solutions, a Dubai- based talent solutions company; enters the UAE market and expands further into the Middle East Acquired Striver, a UAE-based executive search firm, solidifying Hudson RPO’s position in the Middle East and enhancing executive search function 2023 Share Repurchase Announced a $5M share purchase plan in Q3 (following the completion of the previous $10 million plan) 2024 Share Repurchase Acquired 131K shares for a cost of $2.1 million.
© 2024 Hudson RPO. All rights reserved. 5 What is Recruitment Process Outsourcing (RPO)? RPO is in the Business Services sector and part of the Business Process Outsourcing (“BPO”) and Human Capital Management (“HCM”) subsectors RPO involves an employer utilizing an external service provider to perform all or part of its recruitment processes, often replacing work performed by external recruitment agencies and/or in-house teams RPO vs. Traditional Recruiting Supplies its own staff, methodologies, technology, and analytics RPO Assumes ownership of talent solution design and management of recruitment process Assumes client’s staff and work within their technology platform and takes responsibility for the results Services are aligned with client’s long-term objectives and strategic growth plans Offers enterprise-wide and project-based solutions and optimizes client’s talent procurement process Implements an end-to-end recruitment solution, offers efficiencies and value Personnel can be located on-site at the client’s offices or offsite centralized facilities Offshore, shared-service facilities perform work for multiple clients in multiple time zones © 2024 Hudson RPO. All rights reserved. 6 Global RPO Market – Size and Growth(1) $9.45 – $9.55 2028E $5.4 $6.2 $5.4 $5.5 - $5.7 $- $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 $10.0 2021 2022 2023 2024E U S D ( in b ill io n ) 14% -12% 4% - 6% 13% - 15% CAGR (1) Everest Group (2024) Note: Market size in terms of Annualized Contract Value (ACV). Estimated growth rate is based on growth in number of hires © 2024 Hudson RPO. All rights reserved. 7 RPO Model vs. Recruitment Agency Model Factor Location of Service Provider Ownership of Recruitment Process Candidate Quality Candidate Experience Proactive Recruitment Cost to Client Level of Client Engagement Duration of Relationship with Client Depth of Relationship with Client Delivery Model Pricing Model Length of Contract Recurring Revenues Initial Sales Process RPO Model On-Site and Centers of Excellence High Consistently Good High/Brand Ambassadors Strong/Maintain Talent Pools Lower, especially as volume increases Very High (Partnership) Long/Recurring Very Deep and Wide Client-Focused/Subject Matter Expertise Combination of fixed monthly management fees and variable fees Solution-based and typically multi-year with high renewal rates High Long Recruitment Agency Model Never On-Site and No Centers of Excellence Low Uneven Consistency Uneven Low High Transactional Transactional Shallow/Transactional Role-Focused or Candidate-Focused Purely Variable/Transactional Transactional Low Short (1) Everest Group (2024) We believe the RPO industry is taking share from traditional recruitment agencies for the reasons below: © 2024 Hudson RPO. All rights reserved. 8 Who is Hudson RPO? Where are we now? Today We partner at every phase of the recruitment lifecycle from employer branding to sourcing to DEI and candidate and Hiring Manager experience. Key strengths in Pharma & Life Sciences, Financial Services, Technology, FMCG, & Energy, Manufacturing sectors globally. Core Offering E2E RPO, Project RPO, MSP, Boutique Search, Employer Value Proposition (EVP) & Brand, Sourcing, Candidate Care. We have experienced regional leadership teams with high tenure in the Human Capital Management industry. 20,000 annual hires across 100+ RPO clients. Industry award winning, including 14 consecutive years on HRO Today’s Baker’s Dozen. Where are we going? Next three years Increasing our breadth of services around talent acquisition for our clients; launching Boutique Search across the globe. Expanding our geographical footprint to Japan, Latin America, and South America. Goal of achieving +60,000 hires annually with 150 RPO clients. Creating an atmosphere and culture of a “Career Destination” for talent acquisition professionals. Becoming a household name to Talent Acquisition Professionals, Procurement Leaders, and Chief Human Resources Officers.
© 2024 Hudson RPO. All rights reserved. 9 Recognized Globally Known for decades as a global leader in RPO, clients can now depend on one global partner for a customizable, reliable talent acquisition solutions across the talent spectrum, from entry-level all the way to the C-Suite Hudson RPO Evolution 1999 – 2023 14 consecutive years 2023: #6 in “Overall Enterprise RPO Leaders” 2022 #1 in APAC 2012 – 2023 11 consecutive years 2023: #1 in APAC 2020 – 2022 3 consecutive years China Recruiting & Staffing Solution Provider Value Award Top 3 most engaged RPO Provider 2021 Additional Recognitions 2014 – 2022 “Leader” NEAT Vendor Evaluations 2017 – 2023 7 consecutive years 2023: #3 in EMEA HRO Today’s Baker’s Dozen List © 2024 Hudson RPO. All rights reserved. 10 Global Hubs & Solutions 1000+ Sourcing and Recruitment Specialists 20+ Languages Supported 12+ Sector Expertise COEs “Boutique” Executive Search MSP (Managed Search Provider) Talent AdvisoryRPO Customized solutions from early careers to director-level positions across all industries. Multiple COE Advisory solutions ranging from Talent Mapping, Talent Intelligence, EVP & Employer Brand, and Social Strategies. MSP service with direct talent sourcing capabilities for efficient management. White-glove executive search service for Vice Presidents and above positions. Tampa, Florida Color legend for the geological spread of the following hub locations: Edinburgh, United Kingdom Hyderabad, Trichy, Bangalore, India Shanghai, China Manila, Philippines Dubai, United Arab Emirates 6 Global Talent Hubs Digital Comprehensive Digital strategy leveraging best in class solutions to achieve critical business outcomes. © 2024 Hudson RPO. All rights reserved. 11 Hudson RPO’s Strengths FOCUS • Strength in the “mid-market” – especially known for supporting clients who have a hiring need between 50-1,000 hires per annum • Professional Services – comprehensive talent acquisition and total talent solutions for employers needing mission-critical, professional talent • Senior Management to Entry Level – we partner with our clients at every level and known for finding niche talent • Emerging Growth Companies – we partner with clients at every stage of their growth/life cycle anywhere across the globe • RPO to Total Talent Solutions – grow current RPO solutions, build first generation RPO programs, and offer value-added talent solutions • Geographical Coverage – that rivals any of our competitors with the capability to support any of our clients needs across 6 of the 7 continents. • We focus on clients where acquiring and retaining top talent, and specialized talent, is the key to business success • Our clients partner with us based on value and outcomes given the critical importance of talent to their businesses and the customized nature of our solutions • We immerse ourselves in our clients’ culture, business, and needs so we can deliver the best solutions creating valuable, long-term partnerships • Subject Matter Expertise in each sector is a key differentiator in our client solutions • Disciplined execution delivers efficiencies and effective outcomes to our clients • We have a prestigious client portfolio and a high retention rate because we work diligently to truly partner with our clients and we evolve our solutions to best support our clients’ growth, needs, and objectives. Many clients renew with Hudson with multi-year contracts • Hudson RPO’s global and regional leadership teams have deep expertise across Human Capital solutions and have high tenure at Hudson RPO and on-site with our clients • Hudson RPO’s teams are committed to a culture of engaged leadership, disciplined execution, and profitable growth • Hudson RPO rates very favorably on service, performance, and results relative to our competition as measured by independent client surveys done via SharedXpertise for the HRO Today’s Baker’s Dozen Program • Hudson RPO was named a Top RPO Provider, ranking #1 overall in APAC and #3 overall in EMEA, on the latest Baker’s Dozen List (1) • Hudson RPO has been recognized on the Baker’s Dozen List for fourteen consecutive years CLIENTS TEAM (1) https://www.hrotoday.com/news/talent-acquisition/rpo-staffing/2023-bakers-dozen-customer-satisfaction-ratings-rpo-emea/ © 2024 Hudson RPO. All rights reserved. 12 Hudson RPO By Market Regional Market Dynamics & Hudson Position AMERICAS ASIA-PACIFIC EMEA (1) https://www.hudsonrpo.com/newsroom/hro-today-bakers-dozen-apac/ (2) https://www.hudsonrpo.com/newsroom/hro-today-bakers-dozen-emea/ Market Dynamics • Largest market for RPO services with the US being the largest market in region and globally. • Growth in the LATAM market where regional “staffing firms” have a strong presence which could lead to acquisition targets. • Multi-national companies from the America’s play a key buying role throughout the globe (inclusive of Mexico and Canada). • Companies willing to outsource a portion of their talent acquisitions needs. Hudson Position • Strength in Technology, Life Sciences, Financial Services. • Acquired Coit Group, a San Francisco-based RPO provider specializing in the technology sector (October 2020). • Acquired Karani, LLC, a Chicago-HQ recruiting services provider with clients in the US, but operations in India and the Philippines (October 2021). • Main Center located in Tampa, FL. • Largest Growth Market for Hudson RPO. Market Dynamics • Smallest RPO Market by Region when compared to the America’s and EMEA. • Market Adoption for outsourcing the strongest in Australia, China, Singapore, and India. • Deep cultural nuances lead to different buying behaviors in region. Hudson Position • Consistently ranked as a top RPO provider in APAC(1) • Hudson’s first ever RPO project was in 1999 for J&J in Australia and was one of the first RPO projects in history. • Acquired Hudson Singapore, a recruitment services provider based in Singapore, to significantly increase market presence. • Centers of Excellence in India, Manila, Philippines, and Shanghai, China. • Hudson is well positioned in Australia and New Zealand with significant growth opportunities outside of ANZ within APAC. Market Dynamics • 2nd largest market behind the Americas. • Emerging market in continental Europe with growth from large multinationals benefiting from RPO solutions in the US and UK. • Language requirements and capabilities often a key factor within Talent Acquisition. • Smaller RPO or MSP companies in this region could become acquisition targets. Hudson Position • Ranked among the top RPO providers in EMEA(2) • Acquired Executive Solutions and Striver, UAE- based talent solutions firms; entered and solidified presence in the UAE market and expanded further into the Middle East. • Center of Excellence in Edinburgh, Scotland. • Particularly strong in Life Sciences, Financial and Business Services, and Consumer.
© 2024 Hudson RPO. All rights reserved. 13 85% 90% 75%of applications fall into the “black hole” of recruiters say they don’t have enough time to perform their jobs of recruiter time spent on sourcing, screening and co-ordination • An intuitive, diverse and customised journey for the candidate, where all aspects of the recruitment journey can be completed online. • An accurate and time-saving experience for the talent acquisition team, casting a wide and diverse recruitment net. • A collaborative journey which covers all compliance and audit measures. Offering the hiring manager accurate reporting, market mapping & analytics. TalentMax – The Hudson RPO Tech Solution © 2024 Hudson RPO. All rights reserved. 14 Hudson RPO – Technology Marketplace TalentMax The Marketplace Requisition Management (ATS) Sourcing (AI Sourcing Tools, Predictive Analytics, Job Boards) Offer & Onboarding (Onboarding Platform & ATS ) Candidate Engagement (Conversational AI Platform) Screen & Assess (Aptitude & Skill Assessments, AI Note Capture) Learning & Development (Training Platform, L&D Platform) Reporting (Market Analytics, Supply & Demand Platforms) Candidate Management (CRM) © 2024 Hudson RPO. All rights reserved. 15 Financial Highlights © 2024 Hudson RPO. All rights reserved. 16 LTM 6/30/2024 Financial Highlights $143.0M Revenue $(0.38) Adjusted EPS (Non-GAAP) $69.9M Adjusted Net Revenue $1.3M Adjusted EBITDA (Non-GAAP)
© 2024 Hudson RPO. All rights reserved. 17 Excludes cost pass-throughs of Contracting Adjusted Net Revenue by Region Full Year 2022 Full Year 2023 $30.1M $16.5M $33.7M $80.3M $49.0M $15.9M $34.3M $99.2M Americas 38% EMEA 20% APAC 42% Americas 49% EMEA 16% APAC 35% © 2024 Hudson RPO. All rights reserved. 18 Hudson RPO: Improved Margins & Reduced Expenses 0% 5% 10% 15% 20% 25% RPO Adj EBITDA(1) as % of Adjusted Net Revenue (Rolling 4 Quarter Average) Long-term Goal 60% 70% 80% 90% 100% Salaries & Related(1) as % of Adjusted Net Revenue (Rolling 4 Quarter Average) Profit Margin Improvement Salaries & Related Expenses Long-term Goal Significant Reduction in Corporate Costs 5.6 4.1 3.3 3.4 3.7 3.7 2.4 1.1 0.8 0.6 0.3 0.7 $- $1 $2 $3 $4 $5 $6 $7 $8 $9 2018 2019 2020 2021 2022 2023 Non recurring expenses Corporate costs $8.1M $5.2M $4.1M $4.1M $4.0M $4.3M (1) Before corporate costs of Hudson Global and excluding nonrecurring items. © 2024 Hudson RPO. All rights reserved. 19 Vision & Growth Strategy © 2024 Hudson RPO. All rights reserved. 20 Our Vision and Mission Our VISION Become top RPO provider of professional roles in the industry Our MISSION Maximize value for our stockholders over the long term
© 2024 Hudson RPO. All rights reserved. 21 Business Strategy • Global RPO market expected to grow at a CAGR of 13% - 15% from 2024 to 2028(1) • Hudson RPO’s goal is to exceed market growth rate (i.e., gain share) – Superior service and delivery – Go deeper and broader with existing clients – Grow in existing markets and expand into new markets to support our clients’ needs – Add new clients then “land and expand” • Hudson RPO is investing in people and technology to accelerate its growth • Leverage existing strong reputation by expanding marketing efforts, including social media and website • Reduced complexity left over from legacy businesses • Both corporate and regional • No impact on revenues or growth • Expand capabilities and capacity, not just growth for growth’s sake • Deepen geographic and/or sector presence • Add new talent and skill sets • Immediately accretive • Utilize NOL • Will be opportunistic/price sensitive • Goal is to maximize long-term value per share, not just “return cash” • Balance with acquisition opportunities Grow RPO Keep Overhead Expenses LowInvestigate Acquisition Opportunities Repurchase Stock (1) Everest Group (2024) © 2024 Hudson RPO. All rights reserved. 22 Financial Goals • Grow profitability over time • Turning profitable in mid- 2019 was a watershed event in our Company’s history • Generate high returns on internal growth projects • Adjusted EBITDA margin goal of 25% of Adjusted Net Revenue at RPO level (i.e., pre Corporate Costs) vs. Q2 2024 LTM of 6.8% – Keep Corporate Costs low, even as profits from operating businesses grow – Adjusted EBITDA / Adjusted Net Revenue margins of mid- teens at the corporate level (i.e., after Corporate Costs) • Maximize earnings per share over the long term through: – Growing revenue faster than costs, leading to increasing Adjusted EBITDA margins – Controlling overhead and other fixed costs so these costs will decline as a percentage of revenue over time – Reducing share count through opportunistic stock repurchases PROFITABILITY INTERNAL GROWTH EBITDA MARGIN MAXIMIZE EPS © 2024 Hudson RPO. All rights reserved. 23 Disciplined Acquisition Strategy Focus on core RPO business, or complementary businesses within HCM Characteristics of Potential Targets: • Easy to understand business model complementary to existing Hudson RPO business; cost and revenue synergies • No start-ups or venture-type businesses • Profitable, high margin, high growth • Low/no capex and high FCF/high cash conversion (excluding cash used for working capital) • Additional bolt-on/roll-up opportunities after initial acquisition • Existing operating management willing to stay, at least initially Possible Examples: • RPO: RPO bolt-ons for Hudson RPO, especially in Americas and EMEA • HCM: businesses adjacent/complementary to RPO, which could include MSP, Boutique Search, and Talent Advisory HCM (1) Professional Services All Service Businesses All Asset-Lite Businesses Business Services (1) Human Capital Management, which includes RPO, MSP (Managed Service Provider), and other talent-related solutions businesses. © 2024 Hudson RPO. All rights reserved. 24 Expanding Capabilities and Geographic Footprint Recent Acquisitions October 2020 • Significantly expanded Hudson RPO’s tech presence in the US; new Hudson office in San Francisco • Established, profitable business with strong client base • Coit’s founders (Joe Belluomini and Tim Farrelly) became co- CEOs of Hudson RPO’s newly formed Technology Group • Combination of cash, shares, promissory note, and earn-out agreements Coit Group Karani Hunt & Badge Hudson Singapore October 2021 • Expanded Hudson RPO’s global delivery capability by adding substantial presence in India and Philippines • Strong partnerships supporting recruitment and staffing firms based in the US • Large and growing client base supported by over 500 employees in India and 125 in the Philippines • Expanded Hudson RPO’s expertise in technology recruitment • All current employees of Karani and its subsidiaries joined Hudson RPO, except for owner and CEO who retired • Combination of cash and promissory note August 2022 • Expanded Hudson RPO’s footprint further into the India recruitment market • Compliments Karani’s offerings with many potential synergies between the two companies • Partners with companies of all sizes, including well- known multinationals, across a variety of industries November 2023 • Has a 30-year track record of senior placements and project recruitment work • Large client base across Southeast Asia including Singapore, Malaysia, the Philippines, Vietnam, Thailand, and Indonesia • Offers Hudson RPO cross- selling services among Hudson Singapore’s diverse, blue chip client base Executive Solutions March 2024 • Established in 2008, has a proven record of assisting organizations with the outsourcing of both long- and short-term volume recruitment, rapid growth projects, special projects, overseas campaigns, and Emiratization • Brings to Hudson RPO entry into the United Arab Emirates market • Expansion of footprint in the Middle East aligns with Hudson RPO clients broadening their Middle Eastern presence Striver April 2024 • Leading Executive Search Firm based in Dubai • Founder and CEO Toby Simpson to lead executive search in the Middle East, joining Hudson RPO as Managing Director, Executive Search • Further strengthens Hudson RPO’s executive search function on a global scale and solidifies position in the Middle East
© 2024 Hudson RPO. All rights reserved. 25 Hudson RPO Management Team Paula Nolan Global Managing Portfolio Director • 24 years in industry • 21 years at Hudson RPO Jake Zabkowicz Global CEO • 11 years in industry • Joined Hudson RPO November 2023 Jeff Bettinger Chief Administrative Officer • 20 years in industry • Joined Hudson RPO February 2024 Darren Lancaster CEO Americas & EMEA • 25 years in industry • 12 years at Hudson RPO Bree Walsh Managing Director APAC • 23 years in industry • 16 years at Hudson RPO © 2024 Hudson RPO. All rights reserved. 26 Corporate Management & Finance Team Hudson Global Jeff Eberwein Hudson Global CEO & Director • Chairman of the Board from 2015 to 2018 • 25 years of Wall Street experience • Formed Lone Star Value Management in 2013 • Former portfolio manager at Soros Fund Management and Viking Global Investors • Chairman of the Board at one other publicly traded company Hudson Global CFO • Formerly Vice President of Finance at Hudson Global prior to assuming CFO role • 25 years of finance experience • Served in variety of finance and control roles at PepsiCo from 2001 to 2018 • Held director roles in Financial Reporting, Financial Analysis, and Technical Accounting and Policy at PepsiCo • Certified Public Accountant Hudson RPO Global Finance Managing Director • Started with Hudson in 2015 • Based in Glasgow heading up the Global Finance shared service function • Previously worked in various Finance roles in UK and the Middle East • FCCA qualified with 24 years of experience in various industries Matt Diamond Seonaid MacMillan © 2024 Hudson RPO. All rights reserved. 27 Board of Directors (1) Hudson Global Mimi Drake Connia Nelson Robert Pearse Board Chair • Co-CEO of Permit Capital Advisors, LLC • Served as Founding Board Member of 100 Women in Finance Director • SVP & Chief HR Officer of LifeWay Christian Resources • Former SVP – Human Resources of Verizon Communications, Inc. Director • Managing Partner of Yucatan Rock Ventures • Served as a director of several public companies (1) Independent members © 2024 Hudson RPO. All rights reserved. 28 ESG Considerations Environmental • Committed to continuous improvement in managing the environmental impact of our business operations Social • “People-first” company with corporate policies in place and a strong global team of individuals that believe in diversity, equity and inclusion • Global Diversity, Equality, and Inclusion (“DEI”) Program, sponsored by the Division CEOs; this program is designed to: – Promote DEI initiatives within the Company such as launching training programs and diagnostic tools – Aid in partnering with our clients to accelerate their DEI recruitment, onboarding, sourcing, and branding efforts as well, helping them to be reflective of their global multicultural customer base • Anti-harassment and non-discrimination training available company wide • Employees’ health and safety was our first priority during COVID-19 Governance • Commitment to accountability and transparency • Strive for diversity among board members, management, and employees – Of 1,050 people employed worldwide, approximately 60% are female – 50% of the Company’s Board is diverse (by race, gender, and ethnic diversity combined)
© 2024 Hudson RPO. All rights reserved. 29 Appendix © 2024 Hudson RPO. All rights reserved. 30 Last Twelve Months (LTM) Reconciliation of Non-GAAP Financial Measures 1. Represents Revenue less the Direct contracting costs and reimbursed expenses caption on the Condensed Consolidated Statements of Operations. 2. Non-GAAP earnings before interest, income taxes, and depreciation and amortization (“EBITDA”) and non-GAAP earnings before interest, income taxes, depreciation and amortization, non-operating (income) expense, stock-based compensation expense, and other non-recurring severance and professional fees (“Adjusted EBITDA”) are presented to provide additional information about the Company's operations on a basis consistent with the measures which the Company uses to manage its operations and evaluate its performance. Management also uses these measurements to evaluate capital needs and working capital requirements. EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for operating income, cash flows from operating activities, and other income or cash flow statement data prepared in accordance with generally accepted accounting principles or as a measure of the Company's profitability or liquidity. Furthermore, EBITDA and Adjusted EBITDA as presented above may not be comparable with similarly titled measures reported by other companies. 3. Represents compensation expense payable per the terms of acquisition agreements. 4. Represents compensation expense payable per the terms of the Coit acquisition, including a promissory note for $1.35 million payable over three years, and $500k of the Company's common stock vesting over 30 months. 5. Adjusted net income or loss per diluted share are Non-GAAP measures defined as reported net income or loss and reported net income or loss per diluted share before items such as acquisition-related costs and non-recurring severance and professional fees after tax that are presented to provide additional information about the Company's operations on a basis consistent with the measures that the Company uses to manage its operations and evaluate its performance. Management also uses these measurements to evaluate capital needs and working capital requirements. Adjusted net income or loss per diluted share should not be considered in isolation or as substitutes for net income or loss and net income or loss per share and other income or cash flow statement data prepared in accordance with generally accepted accounting principles or as measures of the Company's profitability or liquidity. Further, adjusted net income or loss and adjusted net income or loss per diluted share as presented above may not be comparable with similarly titled measures reported by other companies. Per Diluted Share Last Twelve Months June 30, 2024 Net income $ (0.67) Non-recurring severance and professional fees (after tax) 0.25 Compensation expense related to acquisitions (after tax) (4) 0.04 Adjusted net income (5) $ (0.38) Reconciliation of Net Income to Adjusted EBITDA, Adjusted EBITDA-RPO, and Corporate Costs (In thousands, unaudited) For The Last Twelve Months Ended June 30, 2024 Americas Asia Pacific Europe RPO Business Corporate Total Revenue, from external customers $ 26,379 $ 92,337 $ 24,256 $ 142,972 $ - $ 142,972 Adjusted net revenue, from external customers (1) $ 25,047 $ 29,808 $ 15,010 $ 69,865 $ - $ 69,865 Net income $ (2,073) Provision for income taxes (183) Interest income, net (365) Depreciation and amortization 1,449 EBITDA (loss) (2) $ (270) $ 1,917 $ 704 $ 2,351 $ (3,523) (1,172) Non-operating expense (income), including corporate administration charges (724) 982 458 716 (1,312) (596) Stock-based compensation expense 249 339 192 780 398 1,178 Non-recurring severance and professional fees 131 628 39 798 953 1,751 Compensation expense related to acquisitions (3) 113 - - 113 - 113 Adjusted EBITDA (loss) (2) $ (501) $ 3,866 $ 1,393 $ 4,758 $ (3,484) $ 1,274 © 2024 Hudson RPO. All rights reserved. 31 FY 2023 Reconciliation of Non-GAAP Financial Measures 1. Represents Revenue less direct contracting costs and reimbursed expenses. 2. EBITDA is a non-GAAP measure defined as earnings before interest, income taxes, depreciation and amortization. Adjusted EBITDA is a non-GAAP measure defined as earnings before interest, income taxes, depreciation and amortization, non-operating income, stock-based compensation expense, and other items such as non-recurring severance and professional fees. 3. Represents compensation expense payable per the terms of the Coit acquisition, including a promissory note for $1.35 million payable over three years, and $500k of the Company's common stock vesting over 30 months, as well as earn out payments. In addition, in 2022 represents compensation expense payable in the form of a CFO retention payment per the terms of the Karani acquisition. 4. Adjusted net income or loss per diluted share is a Non-GAAP measure defined as reported net income or loss per diluted share before items such as acquisition-related costs and non-recurring severance and professional fees after tax that is presented to provide additional information about the company's operations on a basis consistent with the measures which the company uses to manage its operations and evaluate its performance. Management also uses these measurements to evaluate capital needs and working capital requirements. Adjusted net income or loss per diluted share should not be considered in isolation or as a substitute for net income or loss per diluted share and other income or cash flow statement data prepared in accordance with generally accepted accounting principles or as a measure of the company's profitability or liquidity. Further, Adjusted net income or loss per diluted share as presented above may not be comparable with similarly titled measures reported by other companies. Per Diluted Share Twelve Months Ended December 31, 2023 Net income $ 0.70 Non-recurring items (after tax) 0.04 Compensation expense related to acquisitions (after tax) (3) 0.11 Adjusted net income (4) $ 0.86 Reconciliation of Net Income to Adjusted EBITDA, Adjusted EBITDA-RPO, and Corporate Costs (In thousands, unaudited) For The Year Ended December 31, 2023 Americas Asia Pacific Europe RPO Business Corporate Total Revenue, from external customers $ 31,254 $ 103,857 $ 26,227 $ 161,338 $ — $ 161,338 Adjusted net revenue, from external customers (1) $ 30,141 $ 33,675 $ 16,451 $ 80,267 $ — $ 80,267 Net income $ 2,198 Provision for income taxes 370 Interest income, net (372) Depreciation and amortization 1,467 EBITDA (loss) (2) $ (704) $ 5,859 $ 1,582 $ 6,737 $ (3,074) 3,663 Non-operating expense (income), including corporate administration charges (528) 1,181 436 1,089 (1,902) (813) Stock-based compensation expense 407 232 216 855 614 1,469 Non-recurring severance and professional fees 105 292 156 553 658 1,211 Compensation expense related to acquisitions (3) 338 - - 338 - 338 Adjusted EBITDA (loss) (2) $ (382) $ 7,564 $ 2,390 $ 9,572 $ (3,704) $ 5,868 © 2024 Hudson RPO. All rights reserved. 32 FY 2022 Reconciliation of Non-GAAP Financial Measures For The Year Ended December 31, 2022 Americas Asia Pacific Europe RPO Business Corporate Total Revenue, from external customers $ 51,639 $ 118,149 $ 31,129 $ 200,917 $ — $ 200,917 Adjusted net revenue, from external customers (1) $ 48,990 $ 34,278 $ 15,942 $ 99,210 $ — $ 99,210 Net income $ 7,129 Provision for income taxes 2,331 Interest income, net (83) Depreciation and amortization 1,378 EBITDA (loss) (2) $ 4,877 $ 7,282 $ 1,501 $ 13,660 $ (2,905) 10,755 Non-operating expense (income), including corporate administration charges 711 1,151 253 2,115 (2,155) (40) Stock-based compensation expense 713 302 282 1,297 1,021 2,318 Non-recurring severance and professional fees 306 86 1 393 324 717 Compensation expense related to acquisitions (3) 2,651 — — 2,651 — 2,651 Adjusted EBITDA (loss) (2) $ 9,258 $ 8,821 $ 2,037 $ 20,116 $ (3,715) $ 16,401 Reconciliation of Net Income to Adjusted EBITDA, Adjusted EBITDA-RPO, and Corporate Costs (In thousands, unaudited) Per Diluted Share Twelve Months Ended December 31, 2022 Net income $ 2.27 Non-recurring items (after tax) 0.23 Compensation expense related to acquisitions (after tax) (2) 0.88 Adjusted net income (3) $ 3.38 1. Represents Revenue less the Direct contracting costs and reimbursed expenses caption on the Consolidated Statements of Operations. 2. Non-GAAP earnings before interest, income taxes, and depreciation and amortization (“EBITDA”) and non-GAAP earnings before interest, income taxes, depreciation and amortization, non-operating (income) expense, stock-based compensation expense, and other non-recurring severance and professional fees (“Adjusted EBITDA”) are presented to provide additional information about the Company's operations on a basis consistent with the measures which the Company uses to manage its operations and evaluate its performance. Management also uses these measurements to evaluate capital needs and working capital requirements. EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for operating income, cash flows from operating activities, and other income or cash flow statement data prepared in accordance with generally accepted accounting principles or as a measure of the Company's profitability or liquidity. Furthermore, EBITDA and Adjusted EBITDA as presented above may not be comparable with similarly titled measures reported by other companies. 3. Represents compensation expense payable per the terms of acquisition agreements.
© 2024 Hudson RPO. All rights reserved. 33 FY 2021 Reconciliation of Non-GAAP Financial Measures Reconciliation of Net Income to Adjusted EBITDA, Adjusted EBITDA-RPO, and Corporate Costs (In thousands, unaudited) For The Year Ended December 31, 2021 Americas Asia Pacific Europe RPO Business Corporate Total Revenue, from external customers $ 28,797 $ 118,597 $ 21,813 $ 169,207 $ - $ 169,207 Adjusted net revenue, from external customers (1) $ 27,087 $ 28,561 $ 12,509 $ 68,157 $ - $ 68,157 Net income $ 3,227 Provision for income taxes 1,117 Interest income, net (33) Depreciation and amortization 597 EBITDA (loss) (2) $ 1,801 $ 5,452 $ 1,007 $ 8,260 $ (3,352) 4,908 Non-operating expense (income), including corporate administration charges 386 1,399 331 2,116 (2,033) 83 Stock-based compensation expense 556 324 246 1,126 1,298 2,424 Non-recurring severance and professional fees 23 - - 23 637 660 Compensation expense related to acquisitions (3) 1,969 - - 1,969 - 1,969 Adjusted EBITDA (loss) (2) $ 4,735 $ 7,175 $ 1,584 $ 13,494 $ (3,450) $ 10,044 Per Diluted Share Twelve Months Ended December 31, 2021 Net income $ 1.07 Non-recurring items (after tax) 0.22 Compensation expense related to acquisitions (after tax) (2) 0.75 Adjusted net income (3) $ 2.04 (1) Represents Revenue less the Direct contracting costs and reimbursed expenses caption on the Consolidated Statements of Operations. (2) Non-GAAP earnings before interest, income taxes, and depreciation and amortization (“EBITDA”) and non-GAAP earnings before interest, income taxes, depreciation and amortization, non-operating income, stock-based compensation expense, and other non-recurring expenses (“Adjusted EBITDA”) are presented to provide additional information about the company's operations on a basis consistent with the measures which the company uses to manage its operations and evaluate its performance. Management also uses these measurements to evaluate capital needs and working capital requirements. EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for operating income, cash flows from operating activities, and other income or cash flow statement data prepared in accordance with generally accepted accounting principles or as a measure of the company's profitability or liquidity. Furthermore, EBITDA and Adjusted EBITDA as presented above may not be comparable with similarly titled measures reported by other companies. (3) Represents compensation expense payable per the terms of acquisition agreements. © 2024 Hudson RPO. All rights reserved. 34 FY 2020 Reconciliation of Non-GAAP Financial Measures Reconciliation of Net Loss to Adjusted EBITDA, Adjusted EBITDA-RPO, and Corporate Costs (In thousands, unaudited) For The Year Ended December 31, 2020 Americas Asia Pacific Europe RPO Business Corporate Total Revenue, from external customers $ 10,866 $ 75,633 $ 14,949 $ 101,448 $ - $ 101,448 Adjusted net revenue, from external customers (1) $ 9,598 $ 19,814 $ 9,669 $ 39,081 $ - $ 39,081 Net loss $ (1,243) Provision for income taxes 535 Interest income, net (149) Depreciation and amortization 179 EBITDA (loss) (2) $ (1,044) $ 2,877 $ 481 $ 2,314 $ (2,992) (678) Non-operating expense (income), including corporate administration charges and PPP loan forgiveness (1,076) 1,002 (74) (148) (1,641) (1,789) Stock-based compensation expense 88 60 6 154 583 737 Non-recurring severance and professional fees 528 - - 528 755 1,283 Compensation expense related to acquisitions (3) 91 - - 91 - 91 Adjusted EBITDA (loss) (2) $ (1,413) $ 3,939 $ 413 $ 2,939 $ (3,295) $ (356) (1) Represents Revenue less the Direct contracting costs and reimbursed expenses caption on the Consolidated Statements of Operations. (2) Non-GAAP earnings before interest, income taxes, and depreciation and amortization (“EBITDA”) and non-GAAP earnings before interest, income taxes, depreciation and amortization, non-operating income, business reorganization expenses, stock-based compensation expense, and other non-recurring expenses (“Adjusted EBITDA”) are presented to provide additional information about the company's operations on a basis consistent with the measures which the company uses to manage its operations and evaluate its performance. Management also uses these measurements to evaluate capital needs and working capital requirements. EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for operating income, cash flows from operating activities, and other income or cash flow statement data prepared in accordance with generally accepted accounting principles or as a measure of the company's profitability or liquidity. Furthermore, EBITDA and Adjusted EBITDA as presented above may not be comparable with similarly titled measures reported by other companies. (3) Represents compensation expense payable per the terms of acquisition agreements. Per Diluted Share Twelve Months Ended December 31, 2020 Net loss $ (0.43) Non-recurring items (after tax) (0.01) Compensation expense related to acquisitions (after tax) (1) 0.06 Adjusted net loss (2) $ (0.38) © 2024 Hudson RPO. All rights reserved. 35 Questions? Contact us Hudson Global, Inc. Jeffrey E. Eberwein CEO 203-489-9501 / ir@hudsonrpo.com Investor Relations The Equity Group Inc. Lena Cati 212-836-9611 / lcati@equityny.com © 2024 Hudson RPO. All rights reserved.
